NEW DELHI - The Indian Army will not issue fresh bids to buy the ultra-light howitzer that it badly needs for frontline defence. Instead, it will await the outcome of the probe into corruption charges against the Singapore firm, whose guns it had chosen for field trials. The firm is among seven “blacklisted” on corruption charges.
India has not bought any artillery guns since the controversial Bofors deal in 1986. This year, after 10 months of evaluation, it had selected Singapore Technologies for field trials of the ultra light howitzers. Then the firm was blacklisted by the defence ministry, jeopardising the modernisation plan. All dealings with blacklisted firms are on hold.
The first consignment of guns for field trials was supplied by the Singapore firm on May 29 and was positioned for the trials by June 5, the date the blacklist came out.
“The Pegasus light howitzer (of the Singapore Technologies Kinetics) has been selected for field trials after 10 months of evaluation by the defence ministry’s Technical Evaluation Committee. So at the moment the Indian Army will not be issuing fresh RFP (request for proposal) for the ultra light howitzers,” a senior Indian Army official said, requesting anonymity.
“We will wait for the conclusion of investigations in the matter,” the official added.
The ultra light howitzers are required by the Indian Army to counter the Chinese threat as heavy artillery cannot be moved in the mountainous terrain of the Himalayas.
Meanwhile, the Singapore firm has approached the defence ministry for clarification on the development even as it claimed that it is yet to receive an official order regarding the blacklist. The Singapore firm has been the frontrunner for a Rs.29 billion ($612 million) order for 140 ultra-light howitzers.
“ST Kinetics has since approached the authority for clarifications and presented to the MoD (Ministry of Defence) a list of all our business activities in India,” Gaius Ho, assistant vice president (corporate communications) of Singapore Technology, told IANS via email.
“While awaiting a response from the MoD, we have offered all cooperation to assist with any investigation as appropriate and hope that the MoD will quickly review the matter and clear ST Kinetics’ reputation,” Ho added.
Singapore Technologies was one of seven firms the defence ministry blacklisted June 5 after its name cropped up in a case registered by the Central Bureau of Investigation (CBI) against former Ordnance Factory Board (OFB) chief Sudipto Ghosh under the Prevention of Corruption Act.
Allegations of money being transferred to personal accounts had prompted the defence ministry to “put on hold” all dealings with the blacklisted firms.
“We want to clarify that ST Kinetics has not received any official advisory from the Indian authority on the CBI investigation, and is highly disappointed with the implication. We have not in any way contravened regulations imposed by governments of the countries where we conduct our business,” Ho said.
Singapore Technology was also a contender for a Rs.80 billion order for 400 155 mm/52-calibre towed artillery guns as well as the indigenous manufacture of another 1,100 howitzers through the transfer of technology route.
The Indian Army had purchased 410 Bofors 155 mm howitzers in 1986 but the deal was mired in corruption charges and the name of then prime minister Rajiv Gandhi was dragged in. The Supreme Court eventually found no wrongdoing but the taint stuck to Bofors, as a result of which it was not considered for the new order.
Corruption charges also knocked out the South African Denel gun, leaving Singapore Technologies the sole contender in the fray.
The Indian Army is now left with just about half of its 410 guns, with normal wear and tear and cannibalisation accounting for the remaining howitzers.
The other six blacklisted companies are Israeli Military Industries, BVT Poland and Media Architects Pvt. Ltd of Singapore and three Indian companies: T.S. Kishan and Co. Pvt. Ltd., R.K. Machine Tools and HYT Engineering Co.
(Ritu Sharma can be contacted at ritu.s@ians.in)
Related News
ONGC wins most blocks in hydrocarbon auctionOctober 12th, 2009 NEW DELHI - State-run Oil and Natural Gas Corp (ONGC) has bagged 13 blocks in the latest round of auction of hydrocarbon assets, which saw only about half of the oil blocks receiving bids. If ONGC is getting those blocks, then they should find resources to meet their commitments, said Petroleum Secretary R.S.
CBI to withdraw all cases against QuattrocchiSeptember 29th, 2009 NEW DELHI - The Central Bureau of Investigation CBI) on Tuesday decided to withdraw all cases registered against ofors scam main accused and Italian businessman Ottavio uattrocchi. "We want to close the matter against Bofors accused Ottavio uattrocchi," said the CBI.
Delhi Court to hear Bofors pay-off case todaySeptember 7th, 2009 NEW DELHI - A Delhi court will hear the Bofors payoffs case against Italian businessman Ottavio Quattrocchi today. The Central Bureau of Investigation (CBI) may reveal its course of action following the withdrawal of Interpol's Red Corner Notice against him.
Prime Minister to inaugurate anti-corruption conference todayAugust 26th, 2009 NEW DELHI - Prime Minister Dr. Manmohan Singh will inaugurate a two-day CBI conference on anti-corruption here today.
Prime Minister to inaugurate anti-corruption conference on WednesdayAugust 25th, 2009 NEW DELHI - Prime Minister Dr. Manmohan Singh will inaugurate a two-day Central Bureau of Investigation (CBI) conference on anti-corruption on Wednesday.
Uttar Pradesh government pushes forward divestment processJuly 31st, 2009 LUCKNOW - Aiming to expedite the disinvestment of public sector undertakings under its policy of infrastructure development and divestment through public private partnership (PPP), the Uttar Pradesh government Friday decided to invoke the Swiss Challenge Method for bidding, in which the proposer has the first right of refusal, officials said. The move will not only ensure a fair deal and a level playing field for all private parties but will also impart a new dimension to successful project delivery, they added.
Andhra to call global bids for Hyderabad MetroJuly 13th, 2009 HYDERABAD - A week after scrapping the deal with Maytas Infra-led consortium for the Hyderabad Metro Rail, the Andhra Pradesh government Monday decided to invite fresh global bids for the Rs.12,200 crore (Rs.122 billion/$2.4 billion) project. The process of inviting the fresh bids will begin this week and will be completed by Nov 15, Municipal Administration Minister Aanam Ramanarayana Reddy told reporters after a meeting chaired by Chief Minister Y.S.
Singaporean light howitzers enter India despite banJune 24th, 2009 NEW DELHI - India recently received a consignment of 155 mm light howitzers from Singapore Technologies (ST) Kinetics despite a temporary ban on procurements from the company and six others on corruption charges, a leading defence journal says. The 35 cartons of "cargo" that landed in Mumbai on May 29 were booked from Singapore by air charter service Chapman Freeborn, which confirmed the shipment, Aviation Week said.
Blacklisting of firms to hit artillery modernisation: Army chiefJune 12th, 2009 NEW DELHI - Blacklisting of Singapore Technology along with six other defence firms on charges of bribery would delay the process of artillery modernisation in the Indian Army, Gen Deepak Kapoor admitted Friday. The development is of particular concern as the army has not been able to purchase a single gun in the last 23 years.
Blacklisting of firm hits artillery modernisation: Army chiefJune 12th, 2009 NEW DELHI - The Indian Army's 23-year wait for new artillery guns - a crucial element of its modernisation drive - has just got longer with the blacklisting on corruption charges of a Singapore firm. Its howitzer was the frontrunner for a Rs.29 billion ($612 million) order for 140 guns, the army chief, Gen.
Army, Navy on alert to foil LTTE entry: Vice Army ChiefApril 29th, 2009 NEW DELHI - The Indian Army and Navy have stepped up their vigil to prevent an infiltration bid by LTTE cadres. Disclosing this, Vice Chief of Army Staff, Lieutenant General Noble Thamburaj, who was attending a seminar on 'Combating Climate Change by Management of Ozone Depleting Substance', said the Indian Army and Navy have foiled a number of infiltration bids.s for the LTTE entering India, Lt.
No traces of Taliban in Kashmir, assures Indian Army chiefApril 14th, 2009 NEW DELHI - There are no traces of the Taliban in Jammu and Kashmir, Indian Army chief General Deepak Kapoor said Tuesday and added that the force was prepared to check the surge in infiltration in the run-up to the elections. 'We have had no traces of Taliban.
Plea on bids for Air Force museum design dismissedJanuary 18th, 2009 NEW DELHI - The Delhi High Court Monday declined to quash a tender the defence ministry floated in December inviting designs for construction of an Air Force museum here. A division bench of Justices Madan B.
Post Mumbai attack, army seeks more equipment to strengthen forcesJanuary 13th, 2009 NEW DELHI - In the wake of the 60-hour hostage drama that unfolded in Mumbai last year, highlighting the lacunae in the Indian Special Forces, the army has asked for more counter terrorism equipment and decided to fast track the procurement process. Interacting with the media ahead of the 61st Army Day, Indian Army chief General Deepak Kapoor said the army has sought 'better guns and goggles to remove night blindness' in the aftermath of the Mumbai terror attack in which more than 170 people were killed.
Bids received for towed, light howitzers; trials in FebruaryJanuary 12th, 2009 NEW DELHI - In a development that would push the Indian Army's decade-old modernization plan of its artillery, overseas vendors have submitted bids for 180 155mm/52 caliber towed and light howitzers and the trials are expected to commence in February or March, a senior official said Tuesday. The defence ministry had issued the request for proposals (RFPs) for three variants of the howitzers - light, wheeled and self-propelled - a year ago.
Loading ...